President Trump Unlikely to Nominate Gary Cohn to Become Fed Chairman

By Michael C. Bender

WASHINGTON — President Donald Trump is unlikely to nominate Gary Cohn his top economic adviser, as the next Federal Reserve chairman, indicating that he is open to considering additional names for a pick he has said he would like to make by year’s end, according to people familiar with the president’s thinking.

This shift inside the Oval Office was largely due to Mr. Cohn ‘s reaction to Mr. Trump’s response to the violence in Charlottesville, Va., in which the president at times blamed both white supremacists opposing the removal of a Confederate war statue and counterprotesters.

Mr. Trump told The Wall Street Journal in July he was considering Mr. Cohn as a potential successor to Fed Chairwoman Janet Yellen, whose term as central bank chief expires in early February. When asked for comment, Mr. Cohn, who sat in on the interview, laughed, placed his hands over his ears, and said, “This is an interview with the president.”

Mr. Trump said in the interview July 25 that he was also considering whether to nominate Ms. Yellen for a second term. The change in Mr. Cohn’s chances potentially bolsters Ms. Yellen’s prospects. Other names that have been discussed by Mr. Trump and his team as possible nominees to the Fed board of governors include former governors Lawrence Lindsey and Kevin Warsh, former BB&T Bank Chief Executive John Allison, and Stanford University economist John Taylor, according to people familiar with the discussions.

Write to Michael C. Bender at Mike.Bender@wsj.com

Breaking the story

Michael C. Bender was first to report that President Donald Trump might change course and not nominate Gary Cohn as the next Federal Reserve chairman. According to sources, the president has indicated he is open to considering additional names and would likely make a pick by year’s end. Mr. Cohn’s chances as Federal Reserve chief dropped after he criticized the president’s response to the Charlottesville, Va., protests.

Timeline

September 6, 2017, 4:43

President Trump Unlikely to Nominate Gary Cohn to Become Fed Chairman – Sources

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